Question

Four thousand dollars is invested at 5.5 percent interest compounded quarterly for 2 years. Find the amount

Answer 1

Answer:

F=$4461.77

Step-by-step explanation:

$F=P(1+i)^{n}$

Here

F= value of money after 2 years

P= present value

i= interest

n= number of compound on money

P=$4000   i = 5.5%/4=0.01375 n=2x4= 8

$F=4000(1+0.01375)^{8}$

$F=4000(1.01375)^{8}$

$F=4000(1.1154)$

$F= 4461.77$